The Importance of Ethical Leadership: 17 Qualities & Traits

Why is ethical leadership important? 

Regardless of the business, organization, or institution, a great amount of responsibility rests on its leaders. From hiring personnel to settling conflicts to overseeing finances, effective leaders know the importance of ethical leadership—and use it to inform their decisions. 

 So, what is ethical leadership? Let’s start with some basic ethical leadership definitions.

All leaders have a unique leadership style, but the most successful ones lead by example. When a leader’s actions model ethical behavior, are rooted in strong values, and work toward the common good, he or she is demonstrating ethical leadership qualities. 

Social psychologists Michael Brown, Linda Treviño, and David Harrison define ethical leadership as modeling appropriate conduct in actions, relationships, communication, and decision-making. Ethical leadership encompasses honesty, fairness, consideration for others, and trust, and influences others to follow suit. In other words, the importance of ethical leadership is that it creates behavior that employees and peers can — and want to — follow. 

The importance of ethical leadership: Moral dilemmas and decision-making

Consider the following situation. A health care worker reports to work despite feeling sick. It is company policy to notify a supervisor and stay home, but the employee can’t afford to miss work. Upon reporting to the job, the employee speaks with her supervisor and asks to stay and work the shift. The supervisor faces an ethical dilemma: Does she allow her employee to work and risk patients’ health, or does she send the employee home knowing the financial strain it may cause?  

What is ethical leadership in this scenario? Likely, sending the employee home and perhaps offering the opportunity to make up the shift. Regardless, the answer to “why is ethical leadership important” is clear. The supervisor must weigh the consequences of each outcome with company policy, her personal values, and her relationship with the employee. In situations like these, a strong sense of their own ethical leadership definition helps leaders arrive at an answer that aligns with the values of an organization and the greater good. 

Ethical leadership qualities and traits

As we explore the question, “why is ethical leadership important?”, we find that ethical leaders have greater confidence in their values and decision-making—and in turn, more rewarding and fulfilling careers. If you’re considering going back to school for a degree in leadership, here are some of the ethical leadership qualities you’ll develop at Thomas More University.

1. Honesty

Honesty is part of the ethical leadership definition for a reason. Honesty breeds trust, respect, and accountability. Whether sharing feedback on job performance or providing a transparent account of a setback, an ethical leader prioritizes honesty even when it’s challenging. This approach helps leaders instill a sense of trust in their team and get ahead of a problem, often before it arises. 

2. Respect

Like honesty, respect is imperative in ethical leadership—and to the success of the entire business. Without demonstrating respect for customers and clients, organizations will start to lose their reputation, and likely, their business. 

However, it’s also important to respect internal audiences. Recognizing the inherent value of employees, workers, and volunteers helps leaders contribute to job satisfaction, employee retention, and a more positive environment. A Harvard Business Review study (conducted with Georgetown University professor Christine Porath) found that demonstrating respect is one of the ethical leadership qualities that employees need most to feel engaged in the workplace.

3. Fairness

Another key characteristic in Brown et al.’s ethical leadership definition is fairness. Fairness demonstrates a leader’s respect for his or her employees and shows a commitment to equity and inclusivity. Fair leaders challenge their biases, ensure fair compensation, offer recognition for accomplishments, and appreciate every person’s perspective, regardless of background, gender, race, or other categories. 

4. Strong moral values

Perhaps the most important factor in ethical leadership is a strong foundation in values. Part of the importance of ethical leadership is the ripple effects it has within a business or organization. Leaders who demonstrate a commitment to their personal values can inspire their peers and followers to do the same. Like fairness in the workplace, good character and strong morals help build a productive, healthy environment. 

5. Integrity

Encompassing both honesty and strong moral principles, integrity is also one of several important ethical leadership qualities. People want to follow leaders who have integrity—leaders who are aware of and live out their values. These leaders may publicly state their ethics, make values-based decisions, and practice no tolerance for ethical violations. 

6. Kindness

While powerful leaders may seem commanding and transactional, understanding others’ needs and showing compassion is central to ethical—and successful—leadership. In fact, much of the ability to command and manage tasks can stem from recognizing the humanity of others. Those who lead with kindness are genuinely helpful, value employees at all levels of the organization, and forgive mistakes or missteps.

7. Team-oriented

Part of the importance of ethical leadership is the trust it creates between team members. Thus, an ethical leader must look to motivate, build up, and communicate with team members. Team-oriented leaders focus on others over themselves, treating peers and followers as equals rather than subordinates. 

8. Motivation

Ethical leaders must be internally motivated and goal-oriented in their careers and job responsibilities. However, the ethical leadership definition also implies that ethical leaders motivate others. Whether leading by example or challenging bias, an ethical leader inspires others to make change. 

9. Trustworthiness

A leader can earn trust simply by being honest, but ethical leaders should demonstrate trustworthiness in many ways. They solicit advice from others in the business or organization, take responsibility for their actions, and follow through on their word. Trustworthy leaders also keep team members informed and offer transparent accounts of projects or setbacks. 

10. Consistency

What is ethical leadership? An important part is consistency. Effective, ethical leaders behave in predictable ways, creating stability in the workplace and practicing accountability. Consistency shows employees and team members that a leader can follow through—and stay true to his or her word. 

11. Strong communication skills

“Good communication” isn’t necessarily an ethic or value, but it’s still an integral part of ethical leadership. This is because a leader is in a natural position of power and clear communication of expectations, job duties, or other information is essential to an employee or team member’s success. Ethical leaders will use their communication skills to empower their team to achieve both individual and shared goals.    

12. Empathy

Leaders who practice kindness also practice empathy, or the ability to understand their team members’ needs. Part of the importance of ethical leadership is that it naturally promotes empathy. Ethical leaders see individuals as humans, complete with emotions and unique life experiences that can contribute to an organization. 

13. Self-awareness

Improving performance in any role is difficult without self-awareness, but ethical leaders have a particularly strong understanding of their strengths and weaknesses. This knowledge helps them overcome shortfalls that could have an impact on those they lead. 

14. Emotional intelligence 

Related to self-awareness, emotional intelligence refers to the ability to understand, use, and regulate emotions. While most ethical leadership definitions don’t include emotional intelligence directly, without it, leaders wouldn’t be able to consistently model appropriate conduct in actions and relationships. Leaders with emotional intelligence know what they’re feeling and how their emotions and behaviors can impact others—and they act accordingly. 

15. Authenticity 

Authenticity is like honesty, but compared to other ethical leadership qualities, this one involves self-awareness and sincerity, as well. Authentic leaders know themselves and their values, as well as their strengths and limitations. They act consistently and genuinely, and they are confident in themselves and their ability to make decisions.  

16. Influence

Why is ethical leadership important? All leaders hold a level of influence, but ethical leaders use that influence for the good of the organization. Ethical leaders can establish standards for employee or team behavior—and also model that behavior. Doing so can contribute to a leader’s influence and shows a leader’s accountability.

17. Conscientiousness

Finally, conscientiousness is crucial for ethical leadership. Conscientious leaders are organized, responsible, and hardworking. They challenge themselves to behave in ways that align with their values, and they hold their team to the same standard. Conscientiousness helps ensure the completion of tasks but also an adherence to ethics, making it one of the basic ethical leadership qualities.

Learn to lead with integrity and more at Thomas More University.

As a values-based Catholic institution, Thomas More has produced ethical thinkers and leaders for nearly a century. In our B.A. in Organizational Management and Ethical Leadership and M.A. in Organizational Management and Ethical Leadership, you’ll learn from faculty who understand the importance of ethical leadership and live out their values in and out of the classroom. They’ll help you to not just understand “why is ethical leadership important” but also to develop your own sense of values and ethical leadership qualities.

While many universities focus on one facet of leadership, Thomas More combines general and organizational leadership with a foundation in ethics to help you become the successful leader you want to be.